The Ledger is a weekly newsletter about the economics of the music business sent to Billboard Pro subscribers. An abbreviated version of the newsletter is published online.Strong demand for live music is not a surprise given fans’ time away from concerts in 2020 and 2021. But it’s not straightforward, either. Fans are dealing with inflation and high gas and airfare costs. Companies face staffing shortages and higher costs. Artists are flooding markets’ venues seeking to recapture lost business.
Online ticket marketplace Vivid Seats also has big expectations. After a strong first half of 2022, Vivid Seats raised the range of full-year 2022 guidance for three metrics: marketplace gross order value increased to $2.95 billion to $3.15 billion ; revenues to $540 million to $570 million ; and adjusted EBITDA up slightly to $110 million to $117 million .
MSG Entertainment is returning to normalcy after COVID-19 restrictions slashed revenues in 2020 and 2021., MSG Entertainment’s executive vp and CFO, said on Friday that the company is “on track to host a record number of concerts in our first quarter” ending Sept. 30 — including Harry Styles’ 15-night residency at Madison Square Garden that starts Saturday. MSG-owned Tao Group Hospitality has seen its average check size exceed “pre-pandemic levels by double digits in the quarter,” Byrnes said.
Inflation, high gas prices, staffing issues and other rough economic conditions continue to hang over the live events industry, of course. But Vivid Seats CFOis optimistic. “Looking forward, we believe the live event industry with its long-term tailwind, may be somewhat insulated in a recession compared to other consumer discretionary categories,” he said.